Mr LATHAM(4.56 p.m.) —Could I just ask the extent of consultation the government has had with employee associations. It is all right to say that the captains of industry regard this as more viable. They undoubtedly will be in the invitation, whether it is 66 per cent or 75 per cent. We are talking about employees; we are talking about the work force; we are talking about trade unionists in many cases. I would like to hear from the government as to whether or not their consultation went beyond the captains of industry and actually got to the shop floor to consult with the average working Australians who will be affected by this change.

Item 8 agreed to.

Remainder of schedule 3—by leave—taken as a whole, and agreed to.

Schedules 4 and 5—by leave—taken together.

Amendments (by Mr Miles)—by leave—proposed:

(1)   Schedule 4, item 2, page 19 (lines 16 to 20), omit the definition of base time , substitute:

base time , in relation to a public entity, means:

(a)   the last moment of a day within the period beginning on 1 July 1985 and ending on 30 June 1986 that is chosen by the entity and is a day the choice of which will result in a determination that gives a reasonable approximation of the natural persons who held underlying interests in the assets of the entity at the last moment of 19 September 1985; or

(b)   if no day within that period is so chosen—the last moment of 19 September 1985.

(2)   Schedule 4, item 2, page 20 (after line 20), after the definition of hold , insert:

in a position to affect rights has the meaning given by section 160ZZRRB.

(3)   Schedule 4, item 2, page 21 (line 33), omit "trusts.", substitute "trusts; or".

(4)   Schedule 4, item 2, page 21 (after line 33), at the end of the definition of public company , add:

(c)   a 100% subsidiary of a company to which paragraph (b) applies.

(5)   Schedule 4, item 2, page 22 (after line 16), after the definition of special company , insert:

subsidiary : the expression 100% subsidiary has the meaning given by section 160ZZRRA.

(6)   Schedule 4, item 2, page 22 (line 28), after "that is", insert ", or is a 100% subsidiary of,".

(7)   Schedule 4, item 2, page 22 (line 32), omit "other", substitute "listed".

(8)   Schedule 4, item 2, page 23 (line 3), omit "subsection 160ZZSE(2)", substitute "subsections 160ZZSE(2) and (3)".

(9)   Schedule 4, item 2, page 23 (after line 23), after section 160ZZRR, insert:

160ZZRRA What is a 100% subsidiary

(1)   A company (the subsidiary company ) is a 100% subsidiary of another company (the holding company ) if all the shares in the subsidiary company are beneficially owned by:

   (a)   the holding company; or

   (b)   one or more 100% subsidiaries of the holding company; or

   (c)   the holding company and one or more 100% subsidiaries of the holding company.

(2)   However, the subsidiary company is not a 100% subsidiary of the holding company if a person is in a position to affect rights, in relation to the subsidiary company, of:

   (a)   the holding company; or

   (b)   a 100% subsidiary of the holding company.

(3)   The subsidiary company is also not a 100% subsidiary of the holding company if at some future time a person will be in a position to affect rights as described in subsection (2).

(4)   A company (other than the subsidiary company) is a 100% subsidiary of the holding company if, and only if:

   (a)   it is a 100% subsidiary of the holding company; or

   (b)   it is a 100% subsidiary of a 100% subsidiary of the holding company;

   because of any other application or applications of this section.

   160ZZRRB Position to affect rights in relation to a company

   (1)   A person is in a position to affect rights of a company in relation to another company if the person has the right, power or option:

      (a)   to acquire those rights from one or other of those companies; or

      (b)   to do something that would prevent one or other of those companies from exercising its rights for its own benefit, or from receiving any benefit arising from having those rights.

   (2)   It does not matter whether the person has the right, power or option because of the constituent document of one or other of those companies, any agreement or otherwise.

(10)   Schedule 4, item 7, page 26 (lines 6 to 17), omit subsection (3), substitute:

(3)   If there were, at the base time, underlying interests in the asset the holders of which cannot be identified by the entity from an examination of its records, those interests are taken, for the purposes of the determination, to have been held at the base time by natural persons who did not hold underlying interests in the asset at the test time.

(11)   Schedule 4, item 7, page 30 (after line 6), at the end of section 160ZZSE, add:

(3)   However, an issue, redemption or transfer of, or another dealing in, shares in the company or units in the trust is not a trading in the shares or units to which this Division applies if the issue, redemption, transfer or other dealing does not change the proportions in which natural persons hold underlying interests in assets of the company or trust.

(12)   Schedule 4, item 7, page 32 (line 4), before "determine", insert " head company ) or a publicly traded unit trust (the head trust ) may".

(13)   Schedule 4, item 7, page 39 (lines 6 to 9), omit paragraph (c), substitute:

(c)   where a superannuation fund was interposed as mentioned in paragraph (a)—at the test time the fund was a complying superannuation fund or was a foreign superannuation fund; and

(d)   where an approved deposit fund was interposed as mentioned in paragraph (a)—at the test time the fund was a complying approved deposit fund.

(14)   Schedule 5, item 1, page 42 (line 21), after "by", insert "section".

(15)   Schedule 5, item 1, page 45 (lines 20 to 26), omit the provisions relating to trust .

(16)   Schedule 5, item 1, page 45 (before line 27), at the end of section 160ZZPK, add:

Application of Division to trusts

(2)   This Division applies to a trust as if the trust were a taxpayer. However, a trust is not a legal person and any thing to be done by the trust has to be done by the trustee of the trust. Accordingly, any provision of this Division that refers to a taxpayer or entity having been, or not having been, required to do any thing or having done, or not having done, any thing is taken, if the taxpayer or entity is a trust, to refer to the trustee of the trust having been, or not having been, required to do that thing or having done, or not having done, that thing, as the case may be.

(17)   Schedule 5, item 1, page 45 (line 34), after "asset", insert "that is being used solely".

(18)   Schedule 5, item 1, page 46 (line 26), omit "subsection (5)", substitute "subsections (5) and (5A)".

(19)   Schedule 5, item 1, page 47 (after line 7), after subsection (5), insert:

Exception for replacement asset temporarily used to derive rent

(5A)   A replacement asset is not precluded by paragraph (4)(c) from being an active asset merely because its predominant use is to derive rent if its use for that purpose is only temporary.

(20)   Schedule 5, item 1, page 50 (line 24), omit "time of", substitute "time immediately before".

(21)   Schedule 5, item 1, page 54 (line 2), after "assets", insert "(other than a liability that related to an asset that is not an asset for the purposes of this Part because of paragraph (a), (b), (c) or (d) of the definition of asset in subsection 160ZZPL(1))".

(22)   Schedule 5, item 1, page 60 (line 28), omit "net non-goodwill ", substitute "total net ".

(23)   Schedule 5, item 1, page 61 (line 13), omit "net non-goodwill ", substitute "total net ".

(24)   Schedule 5, item 1, page 65 (line 14), omit "asset disposed of ", substitute "change of status occurs ".

(25)   Schedule 5, item 1, page 66 (after line 21), at the end of section 160ZZPZ, add:

(2)   If:

   (a)   a replacement asset that formed part of the estate of a dead person has passed to a beneficiary in that estate; and

   (b)   section 160ZZPX had never applied to the dead person, or to the dead person's legal personal representative, in relation to that asset;

   anything done or omitted to be done by the dead person or the dead person's legal personal representative in relation to the asset is taken for the purposes of this Division to have been done or omitted to be done by the beneficiary.